Peak Rare Earths Shareholders Greenlight Shenghe Takeover Scheme
Peak Rare Earths shareholders have overwhelmingly approved Shenghe Resources’ acquisition scheme, setting the stage for imminent court approval and a cash payout.
- Shareholders approve Shenghe’s acquisition scheme by majority vote
- Court approval hearing scheduled for 18 September 2025
- Scheme expected to become effective on 19 September 2025
- Shareholders to receive at least $0.443 cash per share
- Peak shares likely suspended from ASX trading post-approval
Shareholder Approval Secures Key Milestone
Peak Rare Earths Limited has reached a pivotal moment in its corporate journey with shareholders voting decisively in favour of Shenghe Resources (Singapore) Pte. Ltd.’s proposed acquisition scheme. The resolution passed comfortably, reflecting strong investor support for the transaction that would see Shenghe acquire all remaining shares in Peak that it does not already own.
The approval marks a critical step forward, clearing one of the major hurdles in the acquisition process. The scheme, structured as a court-sanctioned arrangement, requires final judicial endorsement before it can be implemented.
Next Steps – Court Approval and Scheme Effectiveness
The Supreme Court of New South Wales is scheduled to hear the application for approval of the scheme on 18 September 2025. Provided all customary conditions precedent are met or waived, the court’s approval will trigger the scheme’s effectiveness the following day. This will legally bind all Peak shareholders to the terms of the acquisition.
Following the court’s green light, Peak intends to lodge the court orders with the Australian Securities and Investments Commission, formalising the scheme’s status. On this effective date, trading in Peak shares on the ASX is expected to be suspended, signaling the transition of ownership.
Financial Terms and Timeline
Shareholders registered as of 7.00pm Sydney time on 23 September 2025 will be entitled to receive the scheme consideration, which is set at no less than $0.443 cash per share. The final implementation, including payment and share transfer to Shenghe, is anticipated to occur on 30 September 2025.
This cash consideration provides a clear and immediate return to Peak’s shareholders, reflecting Shenghe’s valuation of the company’s rare earths assets and strategic potential.
Market Implications and Strategic Outlook
The acquisition by Shenghe, a significant player in the rare earths sector, underscores the growing consolidation in this critical minerals market. For Peak, the deal offers shareholders a liquidity event and aligns the company’s assets with a larger, resource-focused entity capable of advancing development and production.
Investors will be watching closely as the court hearing approaches, with the outcome likely to influence market sentiment around rare earths stocks and related sectors.
Bottom Line?
With shareholder approval secured, all eyes now turn to the court’s verdict and the final steps toward Shenghe’s full ownership of Peak Rare Earths.
Questions in the middle?
- Will the Supreme Court approve the scheme without delay or conditions?
- Could the final cash consideration per share exceed the minimum $0.443 stated?
- What strategic changes will Shenghe implement post-acquisition?
